Q$2$: Today Tim purchased a $10-y$ ear, $$1,000$ face value with $4\mathrm{.}89\%$ coupon rate compounding semi$-$annually

at yield$-$to$-$maturity of $5\mathrm{.}07\%$ compounding semi$-$annually. Assume Tim would sell his bond in one year when

yield$-$to$-$maturity would change to $4\mathrm{.}96\%$ compounding semi$-$annually. Over the one year inflation would be

$5\mathrm{.}58\%.$